Saudi Aramco Raises Oil Prices to Asia Despite Decreasing Oil Consumption: What Does this Mean?

Saudi Aramco released its official selling price (OSP) this morning.   It raised its prices to Asia and lowered them to the US and Europe.

 It raised the price of Arab Light by 0.90/b to $2.20 above the average price of Dubai/Oman crudes as shown in Figure (1) below.  Arab Light is NOT “light.”  It is medium sour.  It is an old name that has been carried form the concession days. 

Aramco also raised the price of extra light and medium by 0.90/b and the price of heavy by 0.70/b as shown in Table (1) below.  This time, Aramco’s pricing has significant impact on the market. Detail below.

What are the Implications?